Increases to McLeod Russel India Limited's (NSE:MCLEODRUSS) CEO Compensation Might Cool off for now

Under the guidance of CEO AK Khaitan, McLeod Russel India Limited (NSE:MCLEODRUSS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for McLeod Russel India

Comparing McLeod Russel India Limited's CEO Compensation With The Industry

According to our data, McLeod Russel India Limited has a market capitalization of ₹3.5b, and paid its CEO total annual compensation worth ₹36m over the year to March 2022. That is, the compensation was roughly the same as last year. Notably, the salary which is ₹18.0m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.6m. This suggests that AK Khaitan is paid more than the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	₹18m	₹18m	50%
Other	₹18m	₹18m	50%
Total Compensation	₹36m	₹36m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. McLeod Russel India pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

McLeod Russel India Limited's Growth

McLeod Russel India Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is down 6.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has McLeod Russel India Limited Been A Good Investment?

Boasting a total shareholder return of 264% over three years, McLeod Russel India Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for McLeod Russel India you should be aware of, and 2 of them make us uncomfortable.

Switching gears from McLeod Russel India, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.